Alcohol and Poverty: Are they Related? Empirical Study from Sri Lanka

Abstract

The relationship between alcohol and poverty in Sri Lanka is an important area to study to formulate better policies to eliminate poverty in Sri Lanka. The study used the Household Income and Expenditure Survey (HIES) of 2001/02 that covered 16,924 households (71,293 individuals) in seven provinces in Sri Lanka. This study identified the poor by the Sri Lankan official poverty line base which is calculated by the Department of Census and Statistics, Sri Lanka. The probit model was applied to measure the impact on alcohol and poverty. The findings reflect some facts which merit careful attention in the task of Sri Lankan poverty alleviation policies. Illegal alcohol consumption is prevalent in the rural and estate sector poor households. Developing the Sri Lankan alcohol policy would have positive impact towards the society, particularly in addressing poverty reduction issues